Introduction

introduction

One of the key components of becoming a successful day trader is understanding how to find the momentum in the stock market already. If you have any experience in the markets, then you know that stocks will have big price moves solely because of increased volume. It's important to understand what causes these stocks to have an increase in volume so we can have better accuracy and consistency as traders. The day traders who lose tend to not understand where the 'hype' is in the market for that specific morning, and aren't able to get into the stock before its too late, eventually buying the top of these huge morning spikes.

Now, that's not to say that this is the only thing you will need to understand to become a profitable day trader; this is only one segment of the larger 'Three Pillars Of Trading' which include Technical Analysis, Trader Psychology, and Risk Management. Don't let your education stop at this book or else you will end up paying your tuiton into the markets as a form of a loss, rather than investing in your education and joining mentor programs and chat rooms that will benefit your trading and help you prevent clumsy losses.

I hope you enjoy this little book that I've put together that is a cumulation of my favorite penny stock trading strategy, buying low float penny stock morning spikes before everyone else!

When a penny stock sees an influx in buying due to the release of some positive news event. These types of catalysts happen often during premarket trading and after

hours, however do occasionally happen during regular market hours.

When a stock sees an influx in buying due to the completion of a chart pattern that traders recognize as a

buying signal

When a stock is running because another stock within the same sector is running as well. The stock running usually doesn't even have to have any news, simply the fact that it's associated with the `hot market' will occasionally

bring it volume. Some examples of this phenomenon are DRYS, TOPS, DCIX, SHIP and other dry bulk shipping stocks; whenever one of them has a big spike, the others usually

follow suit.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download